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Ohio Laws and Rules
(A) “Association member” means any member of a credit union other than a credit union or an individual member.
(B) “File” or “Filing” means the day on which any correspondence, document, etc. is received at the Ohio department of commerce, division of financial institutions.
(C) “Member” means a person who is a member of a credit union.
(D) “Membership share” means a share of the credit union, the subscription to which shall be a prerequisite for membership in the credit union.
(E) “Net worth” means retained earnings as defined under “Generally Accepted Accounting Principals.” Retained earnings normally include individual earnings, regular reserves and any other appropriately designated by management or regulatory authority.
(F) “Person” includes, without limitation, an individual, a corporation, an unincorporated society or association, or any other organization of individuals.
(G) “Share account” means an account established for a member for which no share certificates are issued but which are included in the registry of shares, which includes all transactions of the credit union pertaining to such shares.
(H) “Superintendent of credit unions” means the “division of financial institutions” or the “superintendent of the division of financial institutions of this state”; and whenever the context requires it, may be read as “director of commerce” or as “chief of the division of financial institutions.” Whenever the division or superintendent of credit unions is referred to or designated in any statute, rule, contract, or other document, the reference or designation shall be deemed to refer to the division or superintendent of financial institutions, as the case may be.
(I) “Voting member” means an association member or an individual member who is qualified to vote as provided by law, rule, the articles, or the regulations.
Effective: 07/01/2006
R.C. 119.032 review dates: 11/15/2010
Promulgated Under: 119.03
Statutory Authority: 1733.41
Rule Amplifies: 1733.41
(A) Reasonable public notice shall be given in the register of Ohio at least thirty days prior to any hearing regarding the adoption, amendment or rescission of rules for credit unions.
(B) The notice shall include:
(1) A statement that the superintendent intends to consider adopting, amending, or rescinding a rule;
(2) A synopsis of the proposed rule, amendment, or rescission or a general statement of the subject matter to which the proposed rule, amendment, or rescission relates;
(3) A statement of the reason or purpose for adopting, amending or rescinding the rule; and
(4) The date, time and place of the hearing on the proposed action.
(C) The superintendent may determine it necessary to provide notice by a means other than that provided in paragraph (A) including:
(1) By publication in a financial institutions industry publication of general circulation in Ohio.
(2) By publication in one or more newspapers of general circulation in Ohio.
(3) By mailing notice to affected credit unions.
(D) In addition to the notice required by paragraph (B) of this rule, the division of credit unions shall mail a copy of the notice to any person who requests it and pays the expense of postage and copying.
Replaces: 1301:9-1-01
Effective: 07/01/2006
R.C. 119.032 review dates: 11/15/2010
Promulgated Under: 119.03
Statutory Authority: 1733.41
Rule Amplifies: 119.03
Prior Effective Dates: 9/1/79
(A) EDP examinations.
(1) Credit unions utilizing computers shall adopt as a minimum, the following policies:
(a) An EDP policy which shall provide for operating procedures, practices and purchases of computer equipment. These policies and procedures shall serve as an overall plan and analysis of how the system benefits the credit union.
(b) A security policy which shall provide for the physical security of the hardware, software and the data base. This policy should include everything from locking doors to use of and safeguarding of passwords.
(c) A backup and recovery policy which shall provide for backup of transactions daily and the system weekly, maintaining three generations of backup and one off site and limiting access to backup.
(d) A contingency/disaster recovery policy and plan which shall provide for procedures for interruption of computer operations and tests for ability to recover both hardware and software.
(2) Credit unions utilizing a servicer shall have a contract which provides for ownership of the data base, minimum notice for cancelling the contract, and a plan for obtaining a copy of the EDP and regular audit of the servicer periodically, a copy of the backup and recovery plan, and a disaster plan to ensure solvency and continued service. The contract shall also, provide the superintendent or his representatives with complete access to any books and records of the service, as deemed necessary by the superintendent in carrying out his responsibilities.
(B) Supervision-roster of officials.
(1) A credit union shall provide to the superintendent annually, within ten days after it holds its annual meeting and reorganizational meeting, a roster of directors, officers and senior management personnel.
(2) Within ten days after the board of directors appoints a director to fill a vacancy, elects a new officer or officers, appoints or approves a senior management employee, the credit union shall notify the superintendent in writing of the change.
(3) Credit unions operating under a supervisory agreement or letter of understanding and agreement, shall notify the superintendent in writing, by certified mail, at least fifteen days prior to the date any change in the position of director, officer, committee member or any senior management personnel takes place. The notice shall include the position that the person will be assuming and a detailed resume. An individual shall not assume a position and related duties until after the superintendent has approved such change in writing.
R.C. 119.032 review dates: 03/17/2006 and 11/15/2010
Promulgated Under: 119.03
Statutory Authority: 1733.41
Rule Amplifies: 1733.32
Prior Effective Dates: 8/3/93
(A) Each credit union shall file an annual financial report of the affairs and business of the credit union as of December thirty-first of the preceding year pursuant to division (c) of section 1733.32 of the Revised Code. The annual financial report shall be filed upon the date designated by the division of financial institutions in a notice mailed to each credit union at least thirty days in advance of the filing date. If a credit union fails to file its annual financial report by the filing date, the superintendent may assess a fine in accordance with paragraph (k) of this rule.
(B) Each credit union engaged in operations as of January first of a calendar year shall pay the supervisory fee described in division (e) of section 1733.32 of the Revised Code based on a percentage of the gross assets of the credit union, as shown by its last annual financial report, by the following groupings:-
(1) The amount from $1 to $125,000 of the credit union’s gross assets shall be billed at a rate as established by the superintendent;
(2) The amount from $125,001 to $4,000,000 of the credit union’s gross assets shall be billed at a rate which is not less than one-fiftieth of one per cent, or .20 per $1,000 and not more than
A rate of one-ninth of one per cent, or 1.11 per $1,000
(3) The amount from $4,000,001 to $30,000,000 of the credit union’s gross assets shall be billed at a rate which is no greater than one-sixteenth of one per cent, or .62 per $1,000;
(4) any amount above $30,000,000 of the credit union’s gross assets shall be billed at a rate which is no greater than one-twentieth of one per cent, or .50 per $1,000
(C) “Gross assets” are defined as total assets, plus the allowance for loan loss account, plus the allowance for investment loss account.
(D) In accordance with division (e)(4) of section 1733.32 of the Revised Code, the total amount of each semiannual billing to all credit unions combined shall equal one-half of the appropriation made by the Main Operating Appropriation Act, including any modifications made by the controlling board. In determining the supervisory fees the superintendent may take into consideration any funds lapsed from the appropriation made in the previous fiscal year.
(E) New charters-a newly chartered credit union is not required to pay a supervisory fee in the year in which its legal existence begins.
(F) Conversions-a federal credit union which converts to a state chartered credit union is not required to pay a supervisory fee in the year of the conversion. A state chartered credit union which converts to a federal credit union shall not receive a refund of any supervisory fee paid to the division prior to the effective date of the conversion.
(G) Mergers-a credit union which merges with a state chartered or federal credit union shall not receive a refund of any supervisory fee paid to the division prior to the effective date of the merger. The superintendent may waive payment by a credit union of the supervisory fee which has been assessed, but not paid, prior to the superintendent’s final approval of a merger, if he determines that the payment of the fee would cause severe financial hardship to the credit union going out of existence.
(H) Voluntary dissolution or appointment of a liquidating agent-a credit union which files a certificate of dissolution or for which a liquidating agent is appointed shall not receive a refund of any supervisory fee paid to the division prior to the filing or appointment. The superintendent may waive payment by a credit union of the supervisory fee which has been assessed, but not paid, prior to the filing of a certificate of dissolution or when a liquidating agent is appointed, if he determines that payment of the fee would cause severe financial hardship to the dissolving or liquidating credit union.
(I) Each credit union shall remit the supervisory fee within fifteen days after billing. If the credit union fails to remit the supervisory fee by the fifteenth day after the date of the division’s billing, the superintendent may assess a fine in accordance with paragraph (k) of this rule.
(J) In accordance with division (b) of section 1733.32 of the Revised Code, a credit union shall submit a financial report to the division when requested by the superintendent within thirty days of the superintendent’s request. If the credit union fails to comply with division (b) of section 1733.32, the superintendent may assess a fine in accordance with paragraph (k) of this rule.
(K) Pursuant to paragraphs (a), (i), and (j) of this rule, the superintendent may impose a fine of not more than five hundred dollars for each day the credit union is late in submitting a financial report or supervisory fee. In determining the amount of the fine to be assessed the superintendent shall consider all of the following:
(1) The credit union’s asset size and financial resources;
(2) The seriousness of the violation;
(3) The credit union’s good faith efforts to prevent the violation;
(4) The credit union’s history regarding violations of this rule; and
(5) Any other matters the superintendent considers appropriate in enforcing section 1733.32 of the Revised Code and this rule.
R.C. 119.032 review dates: 03/17/2006 and 11/15/2010
Promulgated Under: 119.03
Statutory Authority: 1733.41
Rule Amplifies: 1733.32
Prior Effective Dates: 7/10/98